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Macroeconomic outlook report: Spain

Fouth quarter of 2018

During the fourth quarter of 2018, Spain's GDP showed a slowdown in its year-over-year growth rate with respect to the previous quarter of 0.17 p.p., standing at 2.33%. GDP lower growth was explained by the slowdown in domestic demand, which fell by 0.15 p.p. with respect to 3Q18, to 2.50%. The unemployment rate decreased by 0.10 p.p. to 14.45%, while the year-over-year growth rate of employment rose by 0.47 p.p. from the previous quarter to 2.98%. Inflation fell by 0.50 p.p. from the previous quarter, to 1.73%. With respect to the exchange rate, the euro depreciated against the dollar, with the average exchange rate at 1.14 $/€ in the fourth quarter of the year.

Macroeconomic overview

  • During the last quarter of the year, the year-over-year growth rate of the Spanish economy stood at 2.33%, a slowdown of 0.17 p.p. with respect to the previous quarter. This performance was due to the lower growth of domestic demand, which registered a year-over-year growth rate of 2.50% during 4Q18, after a quarterly deceleration of 0.15 p.p. The adjustment in domestic demand was mainly due to lower growth in gross capital formation, partially offset by higher growth in public consumption.
  • The unemployment rate stood at 14.45% at the end of the last quarter, after a decrease of 0.10 p.p. from the previous quarter. The year-over-year growth rate of employment stood at 2.98% after a quarterly slowdown of 0.47 p.p.
  • The euro depreciated against the dollar during 4Q18, reaching an average exchange rate of 1.14 $/€ at the end of the fourth quarter of 2018, 0.02 dollars per euro lower than the exchange rate recorded during the previous quarter.
  • As for inflation, in 4Q18 the CPI growth stood at 1.73%. This rate was 0.50 p.p. lower than in 3Q18. The evolution of the Consumer Price Index was mainly marked by the lower growth in energy prices.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).

© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.